Water Conservation Field Services Program
Education - Water Pricing
Water rates are a powerful tool to encourage improved water management. Incentive pricing can be used to encourage efficient use in a flexible and equitable manner. Water rates should be considered in developing any water management plan.
Water rates are:
- Flexible - The district can change rates to respond to changing conditions. Water rates are a powerful tool in the rapidly changing economic and institutional environment. They can be used to respond to a wide variety of goals. Water rates provide a true incentive to improve water management. Water users then make decisions based on their own economic circumstances, thus minimizing intrusion.
- Efficient - Compared to other water management measures, costs to implement water rates are low. Costs to water users are within the their discretion and hence will be in proportion to the benefits gained
- Equitable - Water rates are usually more fair than other fee systems in irrigation districts. This is an important factor in acceptance. Water rates eliminate subsidy and distribute costs according to benefits gained. Water rates are exceptionally
- Effective in addressing revenue goals in combination with other goals. In general, the district's revenue goals will fall into one of the following categories:
- Maintain Revenues at current levels
- Increase revenues
- Minimize volatility of Revenues
Water is priced according to "Rate Schedules". The types of schedules that are used are fixed charge only, water rate only, combination, combination with free water block, and tiered.
Last Updated: 6/17/08